CLEARWATER, Fla., July 17 /PRNewswire-FirstCall/ -- William W. Short, President of Old Harbor Bank, Clearwater, Florida (OTC:OHBK) (BULLETIN BOARD: OHBK) announced second quarter 2008 operating results. Total assets at June 30, 2008, were $242 million, a $44 million (22%) increase over the previous year. Total loans were $193 million, a $38 million (25%) increase and total deposits were $204 million, a $38 million (23%) increase. Nonperforming assets at quarter-end were $13.2 million, a reduction of $1.5 million from the end of the prior quarter. Stockholders Equity remains strong at $22.4 million at the end of the period. The net loss for the three months ended June 30 was $448,000 ($.23 per share) compared to earnings of $149,000 ($.07 per share) for the same period in 2007. The net loss for the six months ended June 30 was $912,000 ($.46 per share) compared to earnings of $186,000 ($.09 per share) for the same period in 2007. The net loss is attributed to an increased provision against possible loan losses, a narrow net interest margin caused by the rapid decrease in the Prime Rate earlier this year, and operating expenses tied to the opening of the New Port Richey and Clearwater offices. The bank continues to aggressively address improvement to the interest margin, control operating expenses, and work through the non-performing loans. Old Harbor Bank is a community bank which opened for business in July 2003. The bank provides commercial banking services to Pinellas, southwestern Pasco and northwestern Hillsborough Counties, Florida. Its headquarters office is located at 2605 Enterprise Road, Suite 100, Clearwater, Florida, and its telephone number is (727) 451-2265. Community Offices are located in Belleair Bluffs, Clearwater, Dunedin, New Port Richey, Palm Harbor, and Trinity, Florida. This press release may contain 'forward-looking statements' that concern future events which are subject to risks and uncertainties. Any such statements are based on certain assumptions and analyses by the Bank and other factors it believes are appropriate in the circumstances. The Bank's actual results, events and developments may differ materially from those contemplated by any forward-looking statement. OLD HARBOR BANK Clearwater, Florida FINANCIAL HIGHLIGHTS (Dollars in thousands, except per share figures) At June 30, June 30, 2008 2007 Total assets $ 241,560 197,878 Loans, net $ 192,615 154,313 Deposits $ 203,671 165,759 Stockholders' equity $ 22,416 22,970 Book value per share $ 11.27 11.55 Number of common shares outstanding 1,989,224 1,989,224 Three Months Three Months Ended Ended 6/30/2008 6/30/2007 Interest income $ 3,404 3,508 Interest expense 1,960 1,946 Net interest income 1,444 1,562 Provision for loan losses 494 119 Net interest income after provision 950 1,443 Noninterest income 85 69 Noninterest expense 1,745 1,264 Earnings (loss) before income taxes (710) 248 Income tax expense (benefit) (262) 99 Net earnings (loss) $ (448) 149 Per Share $ (.23) .07 Six Months Six Months Ended Ended 6/30/2008 6/30/2007 Interest income $ 6,718 6,797 Interest expense 4,073 3,854 Net interest income 2,645 2,943 Provision for loan losses 968 291 Net interest income after provision 1,677 2,652 Noninterest income 170 120 Noninterest expense 3,292 2,457 Earnings (loss) before income taxes (1,445) 315 Income tax expense (benefit) (533) 129 Net earnings (loss) $ (912) 186 Per Share $ (.46) .09 DATASOURCE: Old Harbor Bank CONTACT: William W. Short, President of Old Harbor Bank, +1-727-451-2265, Web site: http://www.oldharborbank.com/

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